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MANAGEMENT DISCUSSION & ANALYSIS

DECEMBER 31, 2018







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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

This Managements Discussion and Analysis (MD&A) is an
overview of all material information about SilverCrest Metals Inc.s (the
Company or SilverCrest) operations, liquidity, and capital resources for the
three and twelve months ended December 31, 2018. The MD&A should be read in
conjunction with the audited consolidated financial statements for the years
ended December 31, 2018 and 2017, and the related notes contained therein, which
have been prepared under International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board. Additional information
relating to the Company, including the Companys Annual Information Form for the
year ended December 31, 2018 (the AIF), is available on SEDAR at www.sedar.comand on the Companys website www.silvercrestmetals.com.

The first, second, third, and fourth quarters of the Companys
fiscal years are referred to as Q1, Q2, Q3, and Q4, respectively. All
amounts are stated in Canadian dollars unless otherwise indicated.

The effective date of this MD&A is March 11, 2019. This
MD&A contains forward-looking information.

FORWARD-LOOKING STATEMENTS

This MD&A contains forward-looking statements within the
meaning of Canadian securities legislation. These include, without limitation,
statements with respect to: the Companys outlook, the strategic plans, timing
and expectations for the Companys exploration drilling programs of the Las
Chispas property, including construction of the Area 51 decline, mineralization
estimates and grades for drill intercepts, permitting for various work, and
optimizing and updating the Companys resource model and preparing a preliminary
economic assessment and prefeasibility study; information with respect to high
grade areas and size of veins projected from underground sampling results and
drilling results; the accessibility of future mining at the Las Chispas
property; intended use of available funds; and expectations regarding the
Companys ability to manage capital resources and meet working capital
requirements.

Such forward-looking statements or information are based on a
number of assumptions, which may prove to be incorrect. Assumptions have been
made regarding, among other things: the reliability of mineralization; the
conditions in general economic and financial markets; availability of skilled
labour; timing and amount of expenditures related to rehabilitation and drilling
programs; and effects of regulation by governmental agencies.

The actual results could differ materially from those
anticipated in these forward-looking statements as a result of risk factors
including: the timing and content of work programs; results of exploration
activities; the interpretation of drilling results and other geological data;
receipt, maintenance and security of permits and mineral property titles;
environmental and other regulatory risks; project cost overruns or unanticipated
costs and expenses; and general market and industry conditions. Reference should
be made to Risk Factors in the AIF for disclosures of risk factors relating to
the Company.

Forward-looking statements are based on the expectations and
opinions of the Companys management on the date the statements are made. The
assumptions used in the preparation of such statements, although considered
reasonable at the time of preparation, may prove to be imprecise and, as such,
readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date the statements were made.

The Company undertakes no obligation to update or revise any
forward-looking statements included in this MD&A if these beliefs, estimates
and opinions or other circumstances should change, except as otherwise required
by applicable law.

QUALIFIED PERSON

Technical information contained in this MD&A has been
prepared by or under the supervision of N. Eric Fier, CPG, P.Eng, and Chief
Executive Officer of the Company, who is a Qualified Person for the purpose of
National Instrument 43-101  Standards of Disclosure for Mineral Projects(NI 43-101).

CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF
MINERAL RESOURCES

This MD&A has been prepared in accordance with the
requirements of the securities laws in effect in Canada, which differ from the
requirements of United States securities laws. The terms mineral resource,
measured mineral resource, indicated mineral resource and inferred mineral
resource are defined in and required to be disclosed by NI 43-101; however,
these terms are not defined terms under the United States Securities and
Exchange Commission (SEC) Industry Guide 7 under the United States Securities
Act of 1933, as amended, and historically have not been permitted to be used in
reports and registration statements filed with the SEC. Investors are cautioned
not to assume that any part or all of mineral deposits in these categories will
ever be converted into reserves. Inferred mineral resources have a great
amount of uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of inferred mineral resources may not form the basis
of feasibility or pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that all or any part of an inferred mineral resource
exists or is economically or legally mineable. Disclosure of contained ounces
in a resource is permitted disclosure under Canadian regulations; however, SEC
Industry Guide 7 historically only permitted issuers to report mineralization
that does not constitute reserves as in-place tonnage and grade without
reference to unit measures.

2

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

Accordingly, information contained in this MD&A contain
descriptions of our mineral deposits that may not be comparable to similar
information made public by U.S. companies subject to the reporting and
disclosure requirements of SEC Industry Guide 7.

3

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

TABLE OF CONTENTS

|1.  | DESCRIPTION
      OF BUSINESS                                                          | 5 
|--- | -------------------------------------------------------------------------------------- | --
|    |                                                                                        |   
|2.  | HIGHLIGHTS                                                                             | 5 
|    |                                                                                        |   
|3.  | SELECTED
      ANNUAL FINANCIAL INFORMATION                                            | 7 
|    |                                                                                        |   
|4.  | SUMMARY
      OF QUARTERLY RESULTS                                                     | 7 
|    |                                                                                        |   
|5.  | RESULTS
      OF OPERATIONS AND FINANCIAL CONDITION                                    | 8 
|    |                                                                                        |   
|6.  | LIQUIDITY
      AND CAPITAL RESOURCES OUTLOOOK.                                        | 8 
|    |                                                                                        |   
|7.  | FINANCINGS
       USE OF PROCEEDS                                                     | 10
|    |                                                                                        |   
|8.  | FINANCIAL
      INSTRUMENTS AND RISK MANAGEMENT                                        | 10
|    |                                                                                        |   
|9.  | RELATED
      PARTY TRANSACTIONS                                                       | 11
|    |                                                                                        |   
|10. | OUTSTANDING
      SHARE CAPITAL                                                        | 11
|    |                                                                                        |   
|11. | OFF-BALANCE
      SHEET ARRANGEMENTS                                                   | 12
|    |                                                                                        |   
|12. | PROPOSED
      TRANSACTION                                                             | 12
|    |                                                                                        |   
|13. | CHANGES
      IN ACCOUNTING POLICIES                                                   | 13
|    |                                                                                        |   
|14. | NEW
      STANDARDS NOT YET ADOPTED                                                    | 13
|    |                                                                                        |   
|15. | RISK
      FACTORS                                                                     | 13
|    |                                                                                        |   
|16. | CRITICAL
      JUDGEMENTS AND ESTIMATES                                                | 15
|    |                                                                                        |   
|17. | DISCLOSURE
      CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING | 16

4

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

1. DESCRIPTION OF BUSINESS

SilverCrest is a Canadian precious metals exploration company
headquartered in Vancouver, BC, that is focused on new discoveries, value-added
acquisitions, and targeting production in Mexicos historic precious metal
districts. The Companys ongoing initiative is to increase its asset base by
acquiring and developing substantial precious metal resources, and ultimately
operating high grade silver/gold mines in Mexico.

The Company has a total of six exploration properties: Las
Chispas, Cruz de Mayo, Huasabas (currently under cancellation process),
Guadalupe (currently optioned to a third party), Angel de Plata, and Estacion
Llano. The Companys current focus is the Las Chispas Property (or the
Property), which is located approximately 180 kilometres northeast of
Hermosillo, Sonora, Mexico. The Property is in a prolific mining area with
nearby precious metal producers and now consists of 28 concessions totaling
approximately 1,400 hectares. The Company has identified 30 epithermal veins on
the Property. Only eight of these 30 veins were included in the mineral resource
estimate described below.

The 30 veins identified on the Property are low to intermediate
sulfidation epithermal veins ranging from 0.5 to 11 metres wide. Veins can
consist of quartz with calcite veining, stockwork, and or breccia. The in-situ
precious metal value within the discovered veins to date is approximately 50/50
silver and gold and contains minor base metals. High-grade areas or zones in a
vein are controlled by structures, bedding contacts, proximity to intrusive
dykes, and geochemical characteristics. A majority of the defined veins are
exposed at the surface with many having historic shallow workings. High-grade
discoveries are being made on fault extensions of unmined veins and down plunge
high-grade extensions away from historic workings. To the Companys knowledge,
all discoveries to date had not been drill-tested until SilverCrest initiated
its program in 2016.

Details of the Companys other five properties are available on
the Companys website, www.silvercrestmetals.com.

2. HIGHLIGHTS

The Companys key events and highlights during 2018, and to
date, include the following:

Las Chispas Exploration and Discoveries to Date

Updated Mineral Resource EstimateN. Eric
Fier, CPG, P.Eng, and Chief Executive Officer of the Company prepared an updated
technical report for the Company in accordance with NI 43-101 titled Technical
Report and Updated Mineral Resource Estimate for the Las Chispas Property,
Sonora, Mexico (the Updated MRE Report) effective September 13, 2018. The
Updated MRE Report is available on the Companys website at www.silvercrestmetals.comor under SilverCrests SEDAR
profile at www.sedar.com.

The updated resource estimate was based on the Companys Phase
I, II, and partial Phase III exploration programs conducted from March 2016 to
September 2018 at an approximate cost of $21.9 million (excluding acquisition
costs) and was classified as an Inferred Mineral Resource based on CIM
Definition Standards. The following are highlights of the Las Chispas updated
resource (September 2018) compared to the Maiden Resource Report (February
2018):

- 38% increase in AgEq ounces from 62.8 to 86.7 million;
- 26% increase in tonnes from 3.4 million to 4.3 million;
- 10% increase in AgEq grade from 568 gpt AgEq to 623 gpt AgEq;
- 75% increase in high-grade AgEq ounces greater than 1,000 gpt from 32.2
  million (Area 51 zone) to 56.3 million (revised Area 51 and Babicanora Norte
  Vein);
- 66% increase in high-grade tonnes grading greater than 1,000 gpt from
  967,000 tonnes to 1,606,000 tonnes;
- Approximately 80% of the updated resource is in the Babicanora Area (3
  veins) with 20% in the Las Chispas Area (5 veins); and
- Five epithermal veins in the maiden resource, eight epithermal veins in
  the updated resource. Total of 30 epithermal veins defined to date in district
  controlled by the Company.

Phase III ExplorationThe Company commenced
the Phase III exploration program on Las Chispas in February 2018 and had
previously estimated Phase III to cost $19.3 million (or US$15.0 million) with
scheduled completion by Q4, 2019. Phase III is ongoing and focuses on expanding
mineralization and improving the resource confidence through in-fill drilling
(25 to 35 metre spacing) to reclassify Inferred Resources to Measured and
Indicated Resources.

As noted in the Updated MRE Report following the initial Phase
III results, the Company initially planned for drilling of approximately 45,000
metres for its Phase III exploration. As of February 28, 2019, the Company has
drilled approximately 305 holes for 87,720 metres in Phase III and cumulatively
133,470 metres drilled in 488 holes since inception. Additional Phase III
results since September 2018 will be presented in a third technical report
(anticipated for Q2, 2019). The Company also plans for an additional 40,000 to
50,000 metres of infill and expansion drilling for the remainder of H1, 2019.

5

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

Other ongoing site work includes preliminary economic
assessment work (see below), ground breaking for the Area 51 decline (see
below), an extensive metallurgical test program, drilling large diameter wells
for site water, and permitting for various additional work.

During 2018, the Company incurred $18.3 million at Las Chispas
(refer to 7. Financings  Use of Proceeds). The Company estimates spending
approximately US$10.0 million in H1 2019 and plans to re-assess its H2, 2019
budget for the Las Chispas property in early Q2, 2019.

Preliminary Economic Assessment (PEA)On
October 2, 2018, SilverCrest retained the services of Tetra Tech Inc. of
Vancouver, BC to complete a PEA for the Las Chispas project. The PEA will
consider the conceptual economics of developing a 1,000 to 1,500 tonne per day
underground mining operation with a counter-current decantation facility (CCD)
and Merrill Crowe recovery circuit similar to those of the nearby Santa Elena
and Mercedes mines. The PEA is now expected to be completed in Q2, 2019
(extended from the previously announced Q1, 2019 estimate further to the Company
expanding the scope of drilling to be included in the imminent third resource
estimate). As part of the PEA, the Company is completing expansion and in-fill
drilling and detailed metallurgy testwork at Las Chispas. Given the high-grade
nature of Las Chispas, the Company is evaluating cyanidation with a possible
add-on gravity and/or flotation circuit followed by intense leaching of
concentrate. This ongoing test work will be helpful in confirming initial
metallurgical recoveries using cyanidation, gravity and flotation methods.
Initial metallurgical testwork completed in November 2017 showed average
recoveries of 86.6% for silver and 98% for gold using standard cyanidation only.

Exploration DeclineDuring December 2018, the
Company selected its contractor to construct an exploration decline to access
the Babicanora Vein, Area 51 zone. As of February 2019, the Company obtained the
necessary permits and commenced work on the decline, estimated to be 550 metres
long, 4.5 metres wide by 4.0 metres in height. The work will also include
drifting 400 to 800 metres along the strike of vein mineralization to collect
information on vein grade and width continuity, reconciliation with the resource
model, geotechnical parameters, mineability, and bulk sampling for additional
metallurgical testwork. During the construction of the exploration drifts, the
Company will set up drill stations to further in-fill drill the Area 51 zone and
test for extensions at depth. The Company expects to be drifting in high-grade
mineralization and stockpiling this material in the second half of 2019.

Other Properties and Activities in Mexico

- In late February 2018, the Companys subsidiary, Minera La Llamarada, S.A.
  de C.V. (Llamarada), and Oro Gold de Mexico S.A. de C.V., a subsidiary of
  Marlin Gold Mining Ltd., entered into an assignment of mining concession
  agreement for the sale and purchase of 100% title of the Guadalupe Mining
  Concession. The price agreed upon by the parties was US$500,000 plus value
  added tax (IVA) to be paid as follows: US$100,000 plus IVA on signing of the
  agreement (received); US$100,000 plus IVA no later than 12 months from the
  date of signing the agreement (received); and US$300,000 plus IVA no later
  than 24 months from the date of signing of the agreement.
- In mid-March 2018, Llamarada purchased a 671.9 hectare ranch. The Company
  now owns approximately two-thirds of the surface rights over the Las Chispas
  mining concessions. The remaining surface rights over the Las Chispas mining
  concessions are held by Llamarada under previously negotiated 20 year lease
  agreements.
- In May 2018, Llamarada reinstated an assignment agreement to purchase a
  100% interest in the El Gueriguito concession by making a payment of $64,555
  (US$50,000). The Company made another scheduled payment of $66,020 (US$50,000)
  in November 2018 to maintain the concession in good standing.
- While the Company continues to have a 100% interest or the option to
  purchase a 100% interest in the Cruz de Mayo, Huasabas, Angel de Plata, and
  Estacion Llano properties, no substantive exploration expenditures are
  currently budgeted nor planned. As a result, as of September 2018, the Company
  recorded impairment expense of $642,283 for all previously capitalized costs
  related to these four properties.

Corporate Update

During 2018, corporate highlights included the following:

- In connection with Christopher Ritchie being appointed President of
  SilverCrest effective January 1, 2018, SilverCrest completed a private
  placement with Mr. Ritchie of 451,800 units at $1.66 per unit for gross
  proceeds of $749,988. Each unit consisted of one common share of the Company
  and a half warrant, with each whole warrant being exercisable to purchase one
  common share of the Company at $2.29 per share until January 17, 2020. Net
  proceeds from this private placement were used for general working capital
  purposes.
- In May 2018, the Company completed a prospectus offering whereby the
  Company issued 8,214,450 common shares at $2.10 per share for gross proceeds
  of $17,250,345. Commissions of $1,313,612 were paid in connection with the
  prospectus offering. Refer to 7. Financings  Use of Proceeds.

6

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

- On December 7, 2018, the Company completed a private placement to SSR
  Mining Inc. of 8,220,645 common shares of the Company at $3.73 per share for
  gross proceeds of $30,663,006. The Company incurred $245,823 of securities
  issuance costs and no finders fee was payable.
- During 2018, the Company issued an aggregate of 236,750 common shares to a
  mineral property concession holder pursuant to a mineral property option
  agreement. The fair value of the shares was $682,992 and the Company incurred
  $10,007 in related securities issuance costs.
- During 2018, the Company issued a total of 4,196,085 common shares of the
  Company for aggregate gross proceeds of $9,011,480 in connection with the
  exercise of stock options and warrants at exercise prices ranging from $0.16
  to $3.00 per share.

Subsequent to December 31, 2018:

- In connection with Pierre Beaudoin being appointed Chief Operating Officer
  of SilverCrest effective November 13, 2018, the Company completed a January
  2019 private placement with Mr. Beaudoin and his nominees of 100,000 units at
  $2.92 per unit for gross proceeds of $292,000. Each unit consisted of one
  common share of the Company and a half warrant, with each whole warrant being
  exercisable to purchase one common share of the Company at $4.03 per share
  until January 11, 2021. Net proceeds from this private placement were used for
  general working capital purposes.
- The Company issued a total of 409,905 common shares for aggregate gross
  proceeds of $452,812 in connection with the exercise of stock options and
  warrants at exercise prices ranging from $0.16 to $2.37 per share.
- The Company cancelled and returned to treasury 62,722 shares pursuant to a
  depositary agreement dated September 15, 2015 entered into between the Company
  and Computershare Trust Company of Canada (Computershare). Computershare was
  appointed to act as depositary for common shares of the Company to be
  distributed to former shareholders of SilverCrest Mines Inc. by a plan of
  arrangement agreement (the Arrangement) dated July 26, 2015. Any shares not
  distributed on or before October 1, 2018, the third anniversary of the date of
  completion of the Arrangement, were returned to the Company for cancellation.

3. SELECTED ANNUAL FINANCIAL INFORMATION

The following table sets out selected annual financial
information derived from the Companys audited annual financial statements for
each of the three most recently completed financial years of the Company:

|                                   |  | 2018       |   |  | 2017       |   |  | 2016       |  
|---------------------------------- |  | ---------- | - |  | ---------- | - |  | ---------- | -
|Comprehensive loss for the year    |  | (5,771,550 | ) |  | (4,875,261 | ) |  | (1,741,825 | )
|Loss per share - basic and diluted |  | (0.08      | ) |  | (0.10      | ) |  | (0.04      | )
|Total assets                       |  | 81,441,064 |   |  | 26,892,561 |   |  | 17,874,477 |  

In 2018, the Company mainly focused on its exploration program
at Las Chispas, drilling over 71,000 metres (2017  32,000 metres, 2016  8,000
metres) and incurring $18.3 million (2017  $9.8 million, 2016  $3.0 million)
of direct costs which were capitalized to exploration and evaluation assets on
the statement of financial position. In 2018, the increase in total assets was
also attributable to the completion of a private placement financing of $30.7
million with SSR Mining Inc. in December 2018.

4. SUMMARY OF QUARTERLY RESULTS

The following table sets out information, derived from the
Companys financial statements, for each of the eight most recently completed
financial quarters:

2018
    
    
    2017Q4
    
    
    Q3
    
    
    Q2
    
    
    Q1
    
    
    Q4
    
    
    Q3
    
    
    Q2
    
    
    Q1December
    
    
    September
    
    
    June30,
    
    
    March31,
    
    
    December
    
    
    **September**
    
    
    June30,
    
    
    March31,31,2018
    
    
    30,2018
    
    
    2018
    
    
    2018
    
    
    31,2017
    
    
    **30,
    2017**
    
    
    2017
    
    
    2017Comprehensive loss for the
      period
    
    (1,363,212
    )
    
    (1,904,992
    )
    
    (1,244,740
    )
    
    (1,258,606
    )
    
    (1,252,991
    )
    
    (1,063,974
    )
    
    (1,042,120
    )
    
    (1,516,176
    )Loss per share - basic and diluted
    
    (0.02
    )
    
    (0.02
    )
    
    (0.02
    )
    
    (0.02
    )
    
    (0.03
    )
    
    (0.02
    )
    
    (0.02
    )
    
    (0.03
    )


The overall increase in comprehensive losses for last two
quarters in 2018, are primarily the result of the added costs associated with
the Companys NYSE American listing in August 2018, impairment of four of the
Companys non-core mineral properties in September 2018, and stock-based
compensation for options granted in late 2018.

7

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

5. RESULTS OF OPERATIONS AND FINANCIAL
CONDITION

During the three and twelve months ended December 31, 2018,
comprehensive losses were $1,363,212 and $5,771,550, respectively, compared to
$1,252,991 and $4,875,261 for the three and twelve months ended December 31,
2017. The significant variations between Q4, 2018 and Q4, 2017 included the
following:

- Exploration expenditures increased to $131,157 (Q4, 2017 $79,341) during
  Q4, 2018, for a total of $139,659 in 2018 (2017  $113,254), as the Company
  began to expense costs related to impaired non-core exploration and evaluation
  assets.
- Impairment costs decreased to $Nil (Q4, 2017  $76,387) during Q4, 2018,
  for a total of $642,283 in 2018 (2017  $76,387), as the Company recorded an
  impairment charge on four of its non-core exploration and evaluation assets in
  Q3, 2018.
- Foreign exchange gain increased to $545,097 (Q4, 2017  loss of $55,681)
  during Q4, 2018, for a total of $912,045 in 2018 (2017  loss of $233,397),
  due to changes in the value of the Canadian dollar compared to the US dollar
  and Mexican peso since Q4, 2017. As at December 31, 2018, the Company is
  primarily exposed to foreign currency risks through holding US dollar cash and
  cash equivalents of $32,359,542 (December 31, 2017  $39,180) and Mexican peso
  cash and cash equivalents of $345,809 (December 31, 2017  $2,157) both
  presented in Canadian dollar equivalents.
- Interest income increased to $157,361 (Q4, 2017  expense of $16,460)
  during Q4, 2018, for a total of $335,164 in 2018 (2017  $41,571), as the
  Company had higher cash balances invested in interest-bearing investments.
- Insurance increased to $67,226 (Q4, 2017  $17,077) during Q4, 2018, for a
  total of $132,620 in 2018 (2017  $59,760), as the Company obtained increased
  insurance coverage related to listing on the NYSE American exchange.
- Management and director fees increased to $264,104 (Q4, 2017 $107,295)
  during Q4, 2018, for a total of $500,289 in 2018 (2017  $327,432), as the
  Company paid increased management fees to key management personnel for
  performance in 2018.
- Professional fees increased to $87,298 (Q4, 2017 $40,522) during Q4, 2018,
  for a total of $315,049 in 2018 (2017  $188,127), due to added legal and
  accounting costs associated with the filing of an annual information form and
  the mineral resource estimates, and addressing other regulatory matters
  including obtaining a listing on the NYSE American.
- Remuneration increased to $728,586 (Q4, 2017  $273,275) during Q4, 2018,
  for a total of $1,466,109 in 2018 (2017  $577,690), as the Company had a
  higher head-count compared to 2017 and increased compensation packages for
  senior management and operational personnel as a result of performance reviews
  in Q4, 2018.
- Share-based compensation increased to $490,974 (Q4, 2017  $383,339) during
  Q4, 2018, for a total of $2,544,834 in 2018 (2017  $2,451,021), as the
  Company granted options during Q4, 2018 and previously granted options vested
  during Q4, 2018.
- Regulatory and transfer agent fees increased to $40,692 (Q4, 2017 
  $21,097) during Q4, 2018, for a total of $238,338 in 2018 (2017  $91,846), as
  the Company incurred fees relating to listing on the NYSE American exchange.
- Tradeshow and travel increased to $92,238 (Q4, 2017  $86,234) during Q4,
  2018, for a total of $448,864 in 2018 (2017  $259,553), as the Company
  increased its marketing activities including attending tradeshows and holding
  roadshows for investors throughout North America and Europe.

6. LIQUIDITY AND CAPITAL RESOURCES OUTLOOK

The Company has financed its operations to date primarily
through the issuance of common shares. The Company currently has no operations
from which to derive revenues.

AssetsAt December 31, 2018, the Company held $44.0
million (2017  $10.1 million) as cash and cash equivalents. The significant
factors for the increase in cash and cash equivalents from 2017 to 2018 include:

- $5,329,424 (2017  $3,428,443) used in operating activities (see 5.
  Results of Operations and Financial Condition) for 2018;
- $16,956,488 (2017  $5,918,212) used in investing activities, primarily for
  the payment of $17,010,194 (2017  $9,023,908) towards exploration and
  evaluation expenditures (see 2. Highlights - Las Chispas Exploration and  Discoveries to Date) and $360,579 (2017 
  $943,259) for the purchase of property and equipment related to Las Chispas
  for 2018; and

8

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

- $56,183,330 (2017  $10,534,262) generated by financing activities,
  primarily from the completion of the private placement to Mr. Ritchie in
  January 2018, the prospectus financing in May 2018, the private placement to
  SSR Mining Inc. in December 2018, and the exercise of options and warrants
  throughout 2018. See 2. Highlights  Corporate Update.

The amounts receivable balance of $170,574 (2017  $68,636)
consists primarily of $79,105 (2017  $61,104) due from Goldsource Mines Inc.
(Goldsource, see 9. Related Party Transactions), interest receivable of
$46,886 (2017  $Nil) and $40,499 due from Mr. Ritchie.

Taxes receivable increased to $3,914,453 (2017  $1,546,202),
which consisted of value added taxes (IVA) in Mexico of $3,877,934 (2017 
$1,526,702) and goods and services taxes in Canada of $36,519 (2017  $19,500)
that the Company has paid and is due to be refunded. The Company believes the
balance is fully recoverable and has not provided an allowance. As the Company
is uncertain of the timing of the recovery of the IVA it has recorded this
receivable as a non-current asset.

Property and equipment increased to $1,302,884 (2017 
$1,001,038) primarily due to the purchases in Mexico during 2018 for Las
Chispas.

Exploration and evaluation assets increased to $31,615,763
(2017  $13,994,090), primarily due to the exploration program at Las Chispas
(see 2. Highlights  Las Chispas Exploration and Discoveries to Date) and for
option payments and concession taxes related to all properties.

LiabilitiesAs at December 31, 2018, accounts
payable and accrued liabilities amounted to $1,462,538 (2017  $906,291), which
relates to various contractual commitments in the normal course of business.

Liquidity outlook and risksWhile the Company
currently has no source of revenue, its cash and cash equivalents of $44.0
million contribute to working capital of $43.0 million (as of December 31,
2018), which management believes will be sufficient to fund exploration
activities and general working capital for the next 12 months. The Companys
financial success is dependent on its ability to discover economically viable
mineral deposits. Assuming the successful completion of its Phase III
exploration program by Q4, 2019, the Company expects to present a fourth
resource report and a preliminary feasibility study which will also help
management determine the scope of its next exploration program. To advance
beyond the currently planned underground and surface exploration programs at Las
Chispas, the Company may require additional financing, which is subject to a
number of factors many of which are beyond the Companys control. There is no
assurance that future equity capital will be available to the Company in the
amounts or at the times desired by the Company or on terms that are acceptable
to it, if at all. In order to facilitate the management of its capital
requirements, the Company prepares annual expenditure budgets which are revised
periodically based on the results of its exploration programs, availability of
financing, and industry conditions.

Commitments The following table reflects the
Companys property option payment commitments due by period as of December 31,
2018:

PaymentduebyperiodInUSD
    
    Total
    
    
    <1year
    
    
    1-2years
    
    
    3-5years
    
    
    >5yearsLas Chispas Option Payments
    $
    460,000
    
    $
    180,000
    
    $
    280,000
    
    $
    -
    
    $
    -Cruz
      de Mayo
    
    655,000
    
    
    50,000
    
    
    50,000
    
    
    150,000
    
    
    405,000Total
    $
    1,115,000
    
    $
    230,000
    
    $
    330,000
    
    $
    150,000
    
    $
    405,000


|• | Not included in the table above
      are concession tax payments, estimated at $208,000 per annum for all
      properties.
|- | ----------------------------------------------------------------------------------------------------------------------------

The Company leases its head office under a non-cancellable
operating lease expiring within five years. On renewal, the terms of the lease
are renegotiated. In 2018, excess office space was sub-let to a third party
under a non-cancellable operating lease expiring in two years. Commitments for
minimum lease payments in relation to non-cancellable operating leases are
payable as follows:

9

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

|                                                                                                                 |   | 2018    |  |   | 2017   | 
|---------------------------------------------------------------------------------------------------------------- | - | ------- |  | - | ------ | 
|Leasepayments                                                                                                    |   |         |  |   |        | 
|Within one year                                                                                                  | $ | 181,184 |  | $ | 96,106 | 
|Later than one year but not later than five
      years                                                          |   | 649,241 |  |   | -      | 
|Latert han five
      years                                                                                      |   | -       |  |   | -      | 
|Total                                                                                                            | $ | 830,425 |  | $ | 96,106 | 
|Sub-Leasepayments                                                                                                |   |         |  |   |        | 
|Future minimum lease payments to be received in relation
      to non-cancellable sub-leases of operating leases | $ | 112,146 |  | $ | 500    | 

7. FINANCINGS  USE OF PROCEEDS

December 19, 2017 FinancingOn December 19, 2017,
the Company completed a brokered private placement offering for gross proceeds
of $10.1 million. The net proceeds of this financing of $9.4 million were for
the Companys continued exploration and drilling programs, to finalize a maiden
resource estimate for the Las Chispas Project, and for general corporate
purposes.

January 17, 2018 FinancingOn January 17, 2018, the
Company completed a private placement offering with its newly appointed
President, Mr. Ritchie, for gross proceeds of $749,988 (see 2. Highlights 
Corporate Update). Net proceeds from this private placement have been used for
general working capital purposes.

May 17, 2018 FinancingOn May 17, 2018, the Company
completed a prospectus offering for gross proceeds of $17.3 million (see 2.
Highlights  Corporate Update). The net proceeds of the offering of
approximately $15.9 million were for updating the resource estimate and
preparation of a PEA at the Las Chispas property; expansion and infill drilling
along multiple veins at the Las Chispas property; Area 51 exploration decline at
the Las Chispas property; assays, underground channel sampling, mapping,
sampling and metallurgical testwork on historical in-situ and muck material at
the Las Chispas property; baseline work, additional surface rights acquisitions,
water exploration and permitting at the Las Chispas property; option payments at
the Companys Las Chispas property; and general working capital and
administrative purposes. Proceeds intended for the PEA were redirected to the
expanded Phase III drill program.

The following table compares the estimated use of net proceeds
(other than working capital and administrative expenses) from the three
financings above and the actual use of the proceeds as of January 31, 2019.

|                                                            |  | UseofProceeds-Financing |  |  | ActualasofJanuary31,2019 | 
|----------------------------------------------------------- |  | ----------------------- |  |  | ------------------------ | 
|Descriptionofexpenditure                                    |  | (inUS$)                 |  |  | (inC$)                   | 
|Expansion and infill drilling                               |  | 8,600,000               |  |  | 10,952,000               | 
|Area 51 exploration decline                                 |  | 3,000,000               |  |  | 3,851,000                | 
|Assays, sampling, mapping and metallurgical
      testwork  |  | 400,000                 |  |  | 507,000                  | 
|Field and administrative costs                              |  | 1,850,000               |  |  | 2,339,000                | 
|Resource Estimates and technical reports                    |  | 400,000                 |  |  | 510,000                  | 
|Option agreement,
      concession taxes and surface rights |  | 2,762,500               |  |  | 3,489,000                | 
|Total                                                       |  | 17,012,500              |  |  | 21,648,000               | 

Expenditures, especially assays, sampling, mapping, and
metallurgical test work, has varied significantly from the amounts estimated in
the financings as a result of accelerating expansion drilling. Between February
13, 2018 to February 28, 2019, the Company has drilled over 87,000 metres. The
additional metres resulted in overall increases in the costs of drilling,
assays, labour, and general exploration.

December 7, 2018 FinancingOn December 7, 2018, the
Company completed a private placement with SSR Mining Inc. for gross proceeds of
$30.7 million (see 2. Highlights  Corporate). All of the net proceeds related
to this financing were still on hand as at February 28, 2019 and as such
excluded from the use of net proceeds calculation above. The Company plans to
use the net proceeds of approximately $30.4 million from this private placement
for its ongoing Phase III program, which includes infill and expansion drilling
until Q4, 2019 and, assuming continued positive exploration results, a
preliminary economic assessment and pre-feasibility study on Las Chispas.

10

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

8. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

The Companys financial instruments consist of cash and cash
equivalents, amounts receivable, and accounts payable. The carrying value of
amounts receivable and accounts payable approximate their fair values due to the
short periods until settlement. The Companys cash and cash equivalents are
measured using level 1 inputs. The Company is exposed to various financial
instrument risks, and assesses the impact and likelihood of this exposure. These
risks include liquidity risk, foreign currency risk, credit risk, and interest
rate risk. Please refer to note 12 of the audited consolidated financial
statements. Where material, these risks are reviewed and monitored by the Board
of Directors.

9. RELATED PARTY TRANSACTIONS

Professional fees

During 2018, the Company paid or accrued professional fees of
$79,804 (2017  $40,244) and securities issuance costs of $259,081 (2017 
$94,945), to Koffman Kalef LLP, a law firm of which the Companys Corporate
Secretary is a partner. At December 31, 2018, $105,375 (2017  $103,195) was
payable to Koffman Kalef LLP.

Key management compensation

The Companys key management personnel have authority and
responsibility for planning, directing, and controlling the activities of the
Company and include the Companys CEO, President, CFO and COO. Key management
personnel compensation is summarized as follows:

|                                    |   | 2018      |  |   | 2017      | 
|----------------------------------- | - | --------- |  | - | --------- | 
|Management fees (1)                 | $ | 431,250   |  | $ | 258,750   | 
|Management remuneration(2)          |   | 612,880   |  |   | 129,745   | 
|Director fees                       |   | 69,039    |  |   | 68,682    | 
|Share -based
      compensation (3) |   | 2,471,541 |  |   | 2,314,719 | 
|                                    | $ | 3,584,710 |  | $ | 2,771,896 | 

|(1) | During 2018 and 2017, management fees were paid to a
      company controlled by the CEO. During 2017, management fees were paid to a
      company controlled by the former Executive Vice President of the
      Company.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | During 2018, remuneration and short-term benefits were
      paid to the President, CFO, and COO. During 2017, remuneration and
      short-term benefits were paid to the CFO.                                            
|(3) | Share-based compensation is the fair value of the vested
      portion of stock options that have been granted to directors and officers
      of the Company.                                                             

Other transactions

During 2018, the Company:

- paid remuneration of $370,216 (2017  $166,282) to two employees, Stephany
  Fier and Nathan Fier, (2017  one employee) providing technical services who
  are immediate family members of the CEO, of which $215,156 (2017  $130,544)
  was recorded as exploration and evaluation expenditures and $155,060 (2017 
  $35,738) was expensed. The Company also recorded share-based compensation of
  $214,833 (2017  $165,855) for the vested portion of stock options granted to
  these employees, of which $126,927 (2017  $165,855) was recorded as
  exploration and evaluation expenditures and $87,906 (2017  $Nil) was
  expensed; and
- the Company recorded a loan receivable of $40,499 from the President which
  bears an interest rate of 2% per annum and is due on December 31, 2019.

On October 1, 2015, the Company entered into an allocation of
costs agreement with Goldsource, a company related by common directors and
officers, N. Eric Fier, Graham Thody and Nicholas Campbell, whereby the Company
shares salaries, administrative services, and other expenses. During 2018, the
Company allocated to Goldsource $138,541 (2017  $176,174) for its share of
these expenses, of which $79,105 (2017  $61,104) was receivable from Goldsource
at December 31, 2018.

11

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

10. OUTSTANDING SHARE CAPITAL

As of the date hereof, the Company had the following common
shares, share purchase warrants and options issued and outstanding:

|Issued & Outstanding Shares: |                   |  |                                  | 85,369,816
|---------------------------- | ----------------- |  | -------------------------------- | ----------
|                             | $
      per share |  | Expiry                           |           
|Warrants:                    | $1.45 - $4.03     |  | Dec 19, 2019 - Jan 10, 2021      | 3,882,400 
|Options:                     | $0.16 - $3.41     |  | Dec
      9, 2020 - Dec 14, 2023 | 7,345,000 
|Fully Diluted                |                   |  |                                  | 96,597,216

11. OFF-BALANCE SHEET ARRANGEMENTS

As at December 31, 2018, the Company had no off-balance sheet
arrangements, such as guarantee contracts, contingent interest in assets
transferred to an entity, derivative instrument obligations, or any obligations
that trigger financing, liquidity, market, or credit risk to the Company.

12. PROPOSED TRANSACTION

As at December 31, 2018 and the date hereof, the Company had no
disclosable proposed transaction. It is the Companys policy not to disclose
transactions until they are fully executed.

13. CHANGES IN ACCOUNTING POLICIES

Financial instruments

The Company adopted all of the requirements of IFRS 9 
Financial Instruments (IFRS 9) as of January 1, 2018. IFRS 9 replaces
IAS 39  Financial Instruments: Recognition and Measurement (IAS 39).
IFRS 9 utilizes a revised model for recognition and measurement of financial
instruments and a single, forward-looking expected loss impairment model. Most
of the requirements in IAS 39 for classification and measurement of financial
liabilities were carried forward in IFRS 9, so the Companys accounting policy
with respect to financial liabilities is unchanged. As a result of the adoption
of IFRS 9, management has changed its accounting policy for financial assets
retrospectively, for assets that continued to be recognized at the date of
initial application. The change did not impact the carrying value of any
financial assets or financial liabilities on the transition date.

The following is the Companys new accounting policy for
financial instruments under IFRS 9:

Classification

The Company classifies its financial instruments in the
following categories: at fair value through profit and loss (FVTPL), at fair
value through other comprehensive income (loss) (FVTOCI), or at amortized
cost. The Company determines the classification of financial assets at initial
recognition. The classification of debt instruments is driven by the Companys
business model for managing the financial assets and their contractual cash flow
characteristics. Equity instruments that are held for trading are classified as
FVTPL. For other equity instruments, on the day of acquisition the Company can
make an irrevocable election (on an instrument-by-instrument basis) to designate
them as at FVTOCI. Financial liabilities are measured at amortized cost, unless
they are required to be measured at FVTPL (such as instruments held for trading
or derivatives) or the Company has opted to measure them at FVTPL.

The Company completed a detailed assessment of its financial
assets and liabilities as at January 1, 2018. The following table shows the
original classification under IAS 39 and the new classification under IFRS 9:

Financial assets/liabilities
    Original classification IAS 39
    New classification IFRS 9Cash and cash equivalents
    FVTPL
    FVTPLAmounts receivable
    Amortized cost
    Amortized costAccounts payable
    Amortized cost
    Amortized cost


The Company did not restate prior periods and determined that
the adoption of IFRS 9 resulted in no impact to the opening accumulated deficit
on January 1, 2018.

Measurement

Financial assets and liabilities at amortized cost

12

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

Financial assets and liabilities at amortized cost are
initially recognized at fair value plus or minus transaction costs,
respectively, and subsequently carried at amortized cost less any impairment.

Financial assets and liabilities at FVTPL

Financial assets and liabilities carried at FVTPL are initially
recorded at fair value and transaction costs are expensed in profit or loss.
Realized and unrealized gains and losses arising from changes in the fair value
of the financial assets and liabilities held at FVTPL are included in the
consolidated statements of comprehensive loss in the period in which they arise.

Impairment of financial assets at amortized cost

An expected credit loss impairment model applies which
requires a loss allowance to be recognized based on expected credit losses. The
estimated present value of future cash flows associated with the asset is
determined and an impairment loss is recognized for the difference between this
amount and the carrying amount as follows: the carrying amount of the asset is
reduced to estimated present value of the future cash flows associated with the
asset, discounted at the financial assets original effective interest rate,
either directly or through the use of an allowance account and the resulting
loss is recognized in profit or loss for the period.

In a subsequent period, if the amount of the impairment loss
related to financial assets measured at amortized cost decreases, the previously
recognized impairment loss is reversed through profit or loss to the extent that
the carrying amount of the investment at the date the impairment is reversed
does not exceed what the amortized cost would have been had the impairment not
been recognized.

Derecognition

Financial assets

The Company derecognizes financial assets only when the
contractual rights to cash flows from the financial assets expire, or when it
transfers the financial assets and substantially all of the associated risks and
rewards of ownership to another entity. Gains and losses on derecognition are
generally recognized in the consolidated statements of comprehensive loss.

Revenue from contracts with customers

The Company adopted all of the requirements of IFRS 15
Revenue from Contracts with Customers (IFRS 15) as of January 1, 2018.
IFRS 15 utilizes a methodical framework for entities to follow in order to
recognize revenue to depict the transfer of promised goods or services to
customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods and services. As the Company
has no revenues, the change did not impact accumulated deficit or any assets and
liabilities on the transition date.

14. NEW STANDARDS NOT YET ADOPTED

IFRS 16, published on January 13, 2016, supersedes IAS 17 
Leases. The standard provides a single lessee accounting model, requiring
lessees to recognize assets and liabilities for all leases unless a lease term
is 12 months or less or the underlying asset has a low value. Lessors continue
to classify leases as operating or finance, with IFRS 16s approach to lessor
accounting substantially unchanged from its predecessor, IAS 17. IFRS 16 applies
to reporting periods beginning on or after January 1, 2019.

The Company plans to apply IFRS 16 effective January 1, 2019
using the modified retrospective method. Under this method, financial
information will not be restated and will continue to be reported under the
accounting standards in effect for those periods. The Company will recognize
lease obligations related to its lease commitments for its office lease. It will
be measured at the present value of the remaining lease payments, discounted
using the Companys incremental borrowing rate as at January 1, 2019. The
associated right of use asset will be measured at the lease obligation amount,
less prepaid lease payments, resulting in no adjustment to the opening balance
of retained earnings. The Company intends to apply the following practical
expedients permitted under the new standard:

- leases of low dollar value will continue to be expensed as incurred; and
- the Company will not apply any grandfathering practical expedients.

As at January 1, 2019 the Company expects to recognize
approximately $602,000 in right-of-use assets and $638,000 of incremental lease
obligations.

13

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

15. RISK FACTORS

Risk management is an ongoing exercise upon which the Company
spends a substantial amount of time. The following factors are those which are
the most applicable to the Company. The discussion which follows is not
inclusive of all potential risks.

Risks inherent in the mining businessThe business
of exploring for mineral resources is inherently risky. Few properties that are
explored are ultimately developed into producing mines. The business involves
substantial financial risks over a significant period of time that even a
combination of careful evaluation, experience, and knowledge may not eliminate.
It is impossible to ensure that the Companys current or proposed exploration
programs will result in commercially viable mining operations. Whether a mineral
deposit will be commercially viable depends on a number of factors, some of
which are: the particular attributes of the deposit, such as size, grade, and
proximity to infrastructure; metal prices which are highly cyclical; and
government regulations, including regulations relating to prices, taxes,
royalties, permitting, land tenure, land use, importing and exporting of
minerals, and environmental protection. The exact effect of these factors cannot
be accurately predicted, but the combination of these factors may result in the
Company not receiving an adequate return on invested capital. There is no
certainty that the expenditures made by the Company towards the search,
evaluation, and development of mineral deposits will result in commercial
quantities of ore.

No history of operations or earningsThe Company has
no history of operations or earnings. The Company is an exploration stage
company, and no operating revenues are anticipated until one of the Companys
projects comes into production, which may or may not occur. As such, any future
revenues and profits are uncertain. The Company is subject to many risks common
to such enterprises, including under capitalization, cash shortages, limitations
with respect to personnel, financial and other resources, and lack of revenues.
There is no assurance that an investor will be successful in achieving a return
on an investment in the common shares of the Company, and the likelihood of
success must be considered in light of its early stage of development.

Additional capital and financing risksThe Company
plans to focus on exploring for minerals, and will use its working capital to
carry out such exploration. The Company has no source of operating cash flow.
The exploration and development of the Companys properties may be dependent
upon the Companys ability to obtain financing through equity or debt, and there
can be no assurance that it will be able to obtain adequate financing in the
future or that the terms of such financing will be favourable to the Company.
Failure to obtain such additional financing could result in the delay or
indefinite postponement of further exploration and development of the Companys
projects, and the Company may become unable to acquire and retain its property
interests.

Foreign operationsThe Companys properties are
located in Mexico, and therefore exposed to various levels of political,
economic, and other risks and uncertainties which could result in work
stoppages, blockades of the Companys business activities, and appropriation of
assets. Some of the Companys properties may be located in areas where Mexican
drug cartels operate. These risks and uncertainties vary from region to region
and include, but are not limited to, terrorism; hostage taking; local drug gang
activities; military repression; expropriation; extreme fluctuations in currency
exchange rates; high rates of inflation; labour unrest; the risks of war or
civil unrest; renegotiation or nullification of existing concessions, licenses,
permits and contracts; illegal mining; changes in taxation policies;
restrictions on foreign exchange and repatriation; and changing political
conditions, currency controls and governmental regulations that favour or
require the awarding of contracts to local contractors or require foreign
contractors to employ citizens of, or purchase supplies from, a particular
jurisdiction.

Title to assetsAlthough the Company has or will
receive title opinions for any properties in which it has a material interest,
there is no guarantee that title to such properties will not be challenged or
impugned. The Company has not conducted surveys of certain claims in which it
holds direct or indirect interest and, therefore, the precise area and location
of such claims may be in doubt. The Companys mineral concessions may be subject
to prior unregistered agreements or transfers or native land claims, and title
may be affected by unidentified or unknown defects. The Company has conducted as
thorough an investigation as possible on the title of properties that it has
acquired or will be acquiring to be certain that there are no other claims or
agreements that could affect its title to the concessions or claims. If title to
the Companys properties is disputed it may result in the Company paying
substantial costs to settle the dispute or clear title and could result in the
loss of the property, which events may affect the economic viability of the
Company.

Surface rightsA mineral concession in Mexico does
not confer any ownership of surface rights. The majority of the Companys
mineral properties are located in remote and relatively uninhabited areas. There
are currently no areas of interest within the Companys mineral concessions that
are overlain by significant habitation or industrial users; however, there are
potential overlapping surface usage issues in some areas. Some surface rights
are owned by local communities or Ejidos, and some surface rights are owned by
private ranching or residential interests. The Company will be required to
negotiate the acquisition of surface rights in those areas where it may wish to
develop mining operations. The Companys mineral interests are located on
community or private land, and it is necessary to deal with the owners for
access and any potential development or exploitation rights. There can be no assurance that the Company
will be able to negotiate and acquire surface access rights on terms acceptable
to the Company or at all.

14

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

Commodity marketsThe price of the Companys
securities, its financial results, and its access to the capital required to
finance its exploration activities may, in the future, be adversely affected by
declines in the price of precious and base metals. Precious metal prices
fluctuate widely and are affected by numerous factors beyond the Companys
control such as the sale or purchase of precious metals by various dealers,
central banks and financial institutions; interest rates; exchange rates;
inflation or deflation; currency exchange fluctuations; global and regional
supply and demand; production and consumption patterns; speculative activities;
increased production due to improved mining and production methods; government
regulations relating to prices, taxes, royalties, land tenure, land use,
importing and exporting of minerals, and environmental protection; and
international political and economic trends, conditions and events. If these or
other factors adversely affect the price of precious and base metals, the market
price of the Companys securities may decline.

Environmental factorsAll phases of the Companys
operations are subject to environmental regulation in the jurisdictions in which
it operates. Environmental legislation is evolving in a manner which will
require stricter standards and enforcement, increased fines and penalties for
non-compliance, more stringent environmental assessments of proposed projects,
and a heightened degree of responsibility for companies and their officers,
directors, and employees. There is no assurance that any future changes in
environmental regulation will not adversely affect the Companys operations. The
costs of compliance with changes in government regulations have the potential to
reduce the profitability of future operations. Environmental hazards that may
have been caused by previous or existing owners or operators may exist on the
Companys mineral properties, but are unknown to the Company at present.

16. CRITICAL JUDGEMENTS AND ESTIMATES

The preparation of these consolidated financial statements in
accordance with IFRS requires management to make judgments, estimates, and
assumptions that affect the reported amounts and the valuation of assets and
liabilities and the disclosure of contingent assets and liabilities at the date
of the consolidated financial statements and the reported amounts of revenues
and expenditures during the year.

These judgments and estimates are continuously evaluated and
are based on managements experience and knowledge of the relevant facts and
circumstances. Actual results may differ from the estimates. Revisions to
estimates and the resulting effects on the carrying amounts of the Companys
assets and liabilities are accounted for prospectively. Information about such
judgments and estimates is contained in the description of accounting policies
(note 2 to the audited consolidated financial statements) and/or other notes to
the financial statements. Management has made the following critical judgments
and estimates:

Critical judgments in applying accounting policiesThe critical judgments that the Companys management has made in the
process of applying the Companys accounting policies, apart from those
involving estimations, that have the most significant effect on the amounts
recognized in the Companys consolidated financial statements are as
follows:

Exploration and evaluation assetsThe application of
the Companys accounting policy for exploration and evaluation expenditures
requires judgment in determining whether future economic benefits are likely,
which may be based on assumptions about future events or circumstances.
Estimates and assumptions made may change if new information becomes available.
If, after expenditures are capitalized, information becomes available suggesting
that the recovery of expenditures is unlikely, the amount capitalized is
recognized in loss in the period that the new information becomes available.

Functional currencyThe functional currency for the
Company is the currency of the primary economic environment in which the entity
operates. The Company had determined the functional currency of its Canadian and
Mexican entities to be the Canadian dollar. Determination of functional currency
may involve certain judgments to determine the primary economic environment, and
the Company reconsiders the functional currency of its entities if there is a
change in events and conditions which determined the primary economic
environment.

Impairment of non-current assetsNon-current assets
are tested for impairment when indicators of impairment are present. Calculating
the estimated fair values of cash generating units for non-current asset
impairment tests requires management to make estimates and assumptions with
respect to metal selling prices; future capital expenditures; reductions in the
amount of recoverable reserves, and exploration potential; production cost
estimates; discount rates; and exchange rates. Reductions in metal price
forecasts; increases in estimated future costs of production; increases in
estimated future non-expansionary capital expenditures; reductions in the amount
of recoverable reserves, and exploration potential; and/or adverse current
economics can result in a write-down of the carrying amounts of the Companys
non-current assets.

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|SILVERCREST METALS INC.              |                                 
|------------------------------------ | --------------------------------
|MANAGEMENTS DISCUSSION AND ANALYSIS |                                 
|YEAR ENDED
      DECEMBER 31, 2018   | TSX.V: SIL | NYSE American: SILV

Key sources of estimation uncertaintyThe
significant assumptions about the future and other major sources of estimation
uncertainty as at the end of the reporting period that have a significant risk
of resulting in a material adjustment to the carrying amounts of the Companys
assets and liabilities are as follows:

Share-based paymentsThe Company uses the
Black-Scholes Option Pricing Model for the valuation of share-based payments.
Option pricing models require the input of subjective assumptions, including
expected price volatility, interest rate, expiry date, and forfeiture rate.
Changes in the input assumptions can materially affect the fair value estimate
and the Companys net loss and share-based payment reserve.

Income taxesManagement is required to make
estimations regarding the tax basis of assets and liabilities and related
deferred income tax assets and liabilities, the measurement of income tax
expense, and indirect taxes. A number of these estimates require management to
make estimates of future taxable profit and, if actual results are significantly
different than estimates, the ability to realize the deferred tax assets
recorded on the statement of financial position could be impacted. The Company
is subject to assessments by tax authorities who may interpret tax law
differently. These factors may affect the final amount or the timing of tax
payments.

17. DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL
CONTROL OVER FINANCIAL REPORTING

Management of the Company, under the supervision of the Chief
Executive Officer and the Chief Financial Officer, is responsible for
establishing and maintaining adequate disclosure controls and procedures.
Disclosure controls and procedures are designed to provide reasonable assurance
that material information related to the Company, including its consolidated
subsidiaries, is made known to the Companys certifying officers. The Companys
Chief Executive Officer and Chief Financial Officer believe that the Companys
disclosure controls and procedures are effective in providing reasonable
assurance that information required to be disclosed under applicable securities
regulations is recorded, processed, summarized and reported within the time
periods specified. Management regularly reviews the Companys disclosure
controls and procedures; however, they cannot provide an absolute level of
assurance because of the inherent limitations in cost effective control systems
to prevent or detect all misstatements due to error or fraud.

Management is responsible for establishing and maintaining
adequate internal control over financial reporting to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of consolidated financial statements for external purposes in accordance with
IFRS. During 2018, the Company adopted the Committee of Sponsoring Organizations
of the Treadway Commission ("COSO") internal control framework (2013) to design
internal controls over financial reporting. The design of any system of controls
and procedures is based in part upon certain assumptions about the likelihood of
future events. There can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions, regardless of
how remote.

As at December 31, 2018, management assessed the design and
operation of our internal control over financial reporting and disclosure
controls and procedures and concluded that such internal control over financial
reporting and disclosure controls and procedures were effective and that there
were no material weaknesses in our internal control over financial reporting.
There has been no change in the Companys internal control over financial
reporting during 2018 that has materially affected, or is reasonably likely to
materially affect, the Companys internal control over financial reporting.

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